Enabling Environment for Private Sector Adaptation

This report reviews practical and implementable interventions that have significantpotential for the creation of an enabling environment for private sector adaptation and the promotion of climate resilient development paths. While there is a broad spectrum of conditions favorable to climate change adaptation, five priority areas are highlighted in this report: data and information, institutional arrangements, policies, economic incentives, and communication, technology and knowledge. In each of these areas, specific interventions of promoting private sector adaptation are analyzed, with an emphasis on them expected economic, social and environmental returns. Measures, indicators and examples are also provided to inform private sector organizations and policy makers about where conditions for adaptation investment are favorable, and what specific improvements can enhance a country’s environment for attracting private investment in climate change adaptation. Acknowledging that further work needs to be done to develop detailed guidance and indices for objective evaluation of levels of the enabling environment for adaptation, this study aims to produce initial indicators for systematic support of climate resilient development in the private sector context.